Boise council to consider regulating Airbnbs. How residents, owners could be affected
For the past few months, Chris Runyan has been giving presentations to neighborhood associations in Boise about the need for the city to regulate short-term rentals, where rooms, apartments or entire homes are converted into vacation rentals and booked using such platforms as Airbnb and Vrbo.
Runyan, an East End homeowner and member of Protect Boise Neighborhoods, said he’s noticed an increase in short-term rentals in his neighborhood. In response, his organization has given multiple presentations and called city leaders in an attempt to bring the issue of short-term rentals to the fore. He hasn’t gotten many responses.
“It’s been very challenging to get anybody’s attention on this issue,” Runyan said by phone.
He may soon get his wish, though.
Boise City Council leaders say an ordinance providing new regulations on short-term rentals is expected come before the council within the next few months. While the exact language is still being drafted, an approval by the council would cement the first regulation of the controversial industry in Idaho’s capital city.
“We believe that everyone would be better off … if we ensure that those properties are licensed and insured appropriately,” Council President Elaine Clegg said.
Clegg said the ordinance would likely include requirements for those operating short-term rentals to obtain a license with the city and show proof of insurance. Those closely resemble provisions in a draft ordinance presented during a council work session in October.
Council members are split on the ordinance, with Patrick Bageant and Holli Woodings saying there’s little evidence that short-term rentals are a problem the city needs to solve. Mayor Lauren McLean has said an ordinance would provide data to see if there is an issue.
It isn’t the first time Boise’s elected officials have considered regulating the short-term rental industry. In 2019, former Mayor David Bieter proposed much stricter regulations, which included a requirement for operators to live in their units. Bieter ended plans to introduce regulations before the City Council after a backlash from such groups as the Boise Regional Realtors.
McLean had said during her 2019 mayoral campaign that she would seek to regulate short-term rentals. She criticized Bieter, her opponent, when he pulled back from his plan.
Short-term rentals draw ire from many Boiseans
As the Treasure Valley continues to struggle with a massive shortage in affordable housing, some advocates have pointed to regulating the industry as a way to free new units for renters and potential homeowners.
Communities around the country have attempted to limit the number of short-term rentals, believing they shrink the housing market and drive up prices. That’s led communities like Santa Fe, New Mexico, and Breckenridge, Colorado, to implement a maximum number of short-term rentals allowed.
But while many other Idaho cities — like Sandpoint and Rexburg — have regulations, Boise has none so far, making it one of the largest cities in the nation with no rules on the industry.
There’s very little public data on short-term rentals in Boise, but there could be more than 1,000 scattered throughout the city, according to AirDNA, a service that analyzes short-term rentals in different markets. Many are located in the North and East Ends, neighborhoods near downtown.
And there could be increasing interest in the investment properties in these neighborhoods. Ada County Assessor Bob McQuade said that the past three months he’s heard of more properties being purchased as investments.
Amy Allgeyer, president of the North End Neighborhood Association, is an architect who says she’s seeing more clients constructing auxiliary dwelling units, or ADUs, on their properties. Typically the auxiliary units were used as long-term rentals or office spaces, but an increasing number are being used as short-term rentals.
“I’m doing twice as many ADUs as I was doing three years ago,” Allgeyer said. “The Airbnb thing is not new, but it seems like it took a while to hit Boise, and I’m seeing more of them.”
Would regulations violate Idaho state code?
But one question has been a sticking point in attempts to regulate the short-term rental industry: Just how legal is it in Idaho?
A 2017 Idaho law prohibits cities and counties from banning short-term rentals in their jurisdictions, except in cases where public health and safety are affected. Council Member Patrick Bageant interprets that to mean that even requiring a license could limit the number of short-term rentals, violating the law.
“Anything you do that specifically targets short-term rentals will have the effect of regulating the short-term rental marketplace,” Bageant said by phone. “I don’t think evidence is as clear as the community’s perception is that short-term rentals are causing harm.”
Not everyone agrees. Clegg said the regulations would help address safety concerns, such as ensuring there are fire alarms and smoke detectors, and are therefore allowed under the law.
Rural Idaho cities start to implement rules
Boise is not the only city in Idaho having this debate. The Ketchum City Council is also considering an ordinance that would require short-term rental units to have an annual permit with the city. In addition, residential zones could only have one short-term rental per parcel and would be limited to a two-night stay.
Ketchum’s proposed ordinance has received backlash from some property owners and the Idaho Association of Realtors. An attorney for the association sent the city an email Dec. 6 saying the ordinance would effectively prohibit some short-term rentals in violation of Idaho law.
“Targeting a property simply due to its use as a short-term rental rather than for health and safety concerns is precisely what (Idaho law) seeks to prevent,” said Jason Risch, the attorney, in the email.
But Ketchum City Administrator Jade Riley said Idaho law also allows cities to require business licenses from any industry in their jurisdiction and that these rules protect the safety of residents and guests, while also ensuring owners are paying their required taxes.
“What we’re putting in place is pretty industry standard,” Riley said. “We just want to have better data and better comfort feeling that people are paying their taxes.”
Clegg said she has yet to receive communication from any Realtors association about a proposed ordinance in Boise.
How the Boise City Council will vote on a short-term rental ordinance is unclear, but it’s unlikely to be unanimous. Bageant said he supports private property rights and would need more evidence to support regulations.
“I think ... the City Council doesn’t have any business reaching into my home and asking me for my documents,” he said.
Asked if she had the votes to pass the ordinance, Clegg said she doesn’t know.
This story was originally published December 13, 2021 at 10:43 AM.
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